Stocks finally taking a break today on little news. It seems it was a lot of profit taking and traders getting a little nervous as many stocks have outrun their support levels. Interesting seeing the DOW down 100 points today. Just a few short weeks ago, this seemed to happen almost every day. Now it seems like a HUGE event. Funny how a few weeks can change the sentiment in the market.
Clearly the consensus is that we've seen the bottom. I can't argue with it based on how the market is reacting to economic data and/or news. We've seen too much evidence that the market won't mark down these banks much more. The government has determined their comfort level with these institutions via their stress test. They are way too far down this path to let any of these institutions to fail, so that risk is basically off the board. That in itself helps to put some sort of a floor under this market, how much, I can't say. But some.
I'm more bullish than I was a couple of weeks ago, but its hard to overpay for stocks without any quality fundamentals. That's why any pullbacks should be helpful to at least put things in perspective.
I'm still a believer in commodities and related stocks. Natural Gas has been the strongest in the past couple of days, and I'll continue to monitor that. I do see Crude Oil rising higher as long as the market holds up.